Yakult Shares Fall as Danone Excludes Making Hostile Bid

A Yakult Danone India Pvt. Ltd. employee holds a pack of Yakult Honsha Co. probiotic drinks at a Yakult center in New Delhi. The Paris-based company has a 20 percent stake in Yakult. Photographer: Prashanth Vishwanathan/Bloomberg

Feb. 1 (Bloomberg) -- Yakult Honsha Co. fell the most in
almost two years after the Nikkei newspaper reported that the
Japanese milk-drink maker’s biggest shareholder, Danone SA,
won’t attempt a hostile takeover to boost its stake.

Yakult dropped 8.7 percent to 3,520 yen at the close in
Tokyo, the biggest decline since March 2011. Danone is working
to establish a mutually beneficial relationship, the newspaper
reported, citing Bertrand Austruy, the Paris-based company’s
chief legal counsel and Yakult outside director. “Danone
confirms there will be no hostile bid for Yakult,” Agnes
Berthet-d’Anthonay, a spokeswoman, said today by phone.

The company has a 20 percent stake in Yakult. In April, the
Nikkei reported that Danone was seeking to increase that holding
to 28 percent and would make a tender offer to raise its
investment to 35 percent if the talks should fail.

Yakult’s probiotic and fermented milk drinks are similar to
offerings from Danone, the world’s largest yogurt maker. The
Japanese company’s deputy president, Yoshihiro Kawabata, said in
May that it would oppose Danone’s offer to raise the stake.

“We can’t comment on the contents, but we are continuing
the talks with Danone so we can reach the best conclusion,”
Hisataka Omori, a spokesman for Tokyo-based Yakult, said by
phone today. “Both parties have agreed to take time to continue
the talks.”